Norwegian Cruise Line Holdings lowered its yearly?profit forecast below Wall Street expectations on Monday as high costs were offset by a robust demand for their higher-priced cruises.

Shares in the company as well as those of its peers Carnival Corp and?Royal?Caribbean were down about 7 percent in premarket trade, tracking a decline in the wider market due to the escalating conflict among the U.S.

The number of new bookings for Norwegian Cruise is slowing down as customers are hesitant to spend on expensive cruises due to the persistent inflation in the U.S. and uncertainty over tariffs.

Fuel costs are also increasing due to escalating tensions around the world, especially in the Middle East. Drydocks and ship maintenance, as well as expenses for drydocks and ship deliveries, are all affecting the margins of cruise operators.

LSEG data shows that the 'cruise operator' now expects an adjusted profit of 2.38 dollars per share in fiscal 2026. This is compared to analysts'?expectations of $2.55 dollars per share.

Norwegian's fourth-quarter revenue was $2.24 billion compared to analysts' expectations of $2.35. Reporting by Neil J Kanatt from Bengaluru, Editing by Leroy Leo

(source: Reuters)